By Chris Becker Torrential trouble in Texas, worry over North Korea and ongoing concerns about the Trump administrations efficacy kept markets well subdued overnight. European shares (sans the FTSE where the UK had a long weekend) started the week poorly after what looked like a good start in Asia yesterday, with US stocks putting
by Chris Becker Outside Australia its been a relatively solid start to the week across risk markets in Asia today. Except the ASX200, all stock markets are up on the lower USD meme following the Jackson Hole conference on Friday. The Aussie dollar is already at its previous two weekly high and ready to go
Jonathon Tepper has a new name for the CBA: And investors are voting with their wallets, hitting new lows: The chart still suggests no support right down to $70 and with the politics getting worse who knows? The under-performance is worsening but the whole sector appears increasingly tarnished: Meanwhile today, Dalian has managed to ease
Did the RBA’s capex unicorn just jog into view? Via Credit Suisse: There is now more than just a scent of animal spirits wafting from Australia Inc. For only the third reporting season since 2012 (the end of the mining boom) companies have guided to higher capex. The upgrades have been considerable at 4.9% for
By Chris Becker The Jackson Hole conference on Friday shook up risk markets, sending the USD lower, bonds higher and kept stock markets on their toes. The double warning from Yellen and Draghi on financial deregulation puts another headwind in front of the risk-on crowd, still wary about the Trump’s administration to get anything done,
by Chris Becker Its thin and choppy trading across Asia as risk markets await the central bank gabfest in Wyoming tonight. Its still positive though with all bourses except the satellite Chinese ASX200 lifting for the day, while crude oil retreated and gold remained firm. In mainland China the Shanghai Composite has shot out the
After breaking support yesterday, Terror Bank is sinking again today: How far is it going to sink? The chart suggests no support down to the $70-72. Here are the relative valuations of the big four: The CBA premium has already retraced to WBC. Will it get to NAB and ANZ? The premium began post-GFC against its
Via UBS: Continuing To Underwhelm Reporting Season is now roughly 80% complete (85% for large-caps and 75% for small-caps). Results (and guidance) have continued to come in on the disappointing side of expectations. From a sector perspective, resources have been the standout sector on the positive side. Disappointments have been concentrated in the exresources &
By Chris Becker Trading volumes are really getting thin now as all eyes, ears and algo bots await the Jackson Hole central bank conference today. US stocks finished a bit lower while European bourses were equally up slightly higher in a wishy-washy session that also saw bond yields fall as risk just defaulted to
by Chris Becker Asian markets are in a flux as traders wait for more staid and stable speeches from Jackson Hole later in the week. The Aussie dollar put in a new weekly low as a result of the risk off mood while the local bond market rallied in response to the Treasury rally overnight. Its
Dalian is warming up again today: XJO is up too as its symmetrical triangle narrows: With Big Iron powering, it would seem that the odds favour an upside break from that pattern: Big Gas also appears constructive as it ravages east coast pensioners: And Big Gold looks positive too as it climbs: But holding it
By Chris Becker Impatience and uncertainty are creeping into markets with a volatile reaction to Trump’s NAFTA and government shutdown statements over is ridiculous Mexican wall last night. US stock markets retreated alongside the USD as a result, with bond yields falling even as rating agencies scratched their heads on the inability of the
by Chris Becker What was supposed to be a risk-on day was spoiled somewhat by a Trump speech which included equal amounts of rhetoric and “I can’t believe he just said that”, sending the USD higher on concerns about trade. Some Chinese markets were closed due to a typhoon while the ASX200 was the worst
No Wall St rally for you! XJO is kidding: As Dalian crashes: Big Iron is off: Big Gas looks strong. If you don’t mind stealing from pensioners then the charts look constructive: Big Gold is firm too but I’m definitely a seller on the notion that Trump has bottomed: Big Bubble is getting hosed as
By Chris Becker Risk on as tensions ease both in the US and Korea’s, with the Trump administrations embiggened war in Afghanistan plus hope for a tax reform legislative agenda help prop up US stocks. The USD lifted alongside, sending a few major currencies down, including safe havens like Yen would should translate into
by Chris Becker Outside Japan its been a fairly positive day here in Asia with most stock markets advancing following the tepid mood overnight on Wall Street and Europe. The Yen weakened against the USD on the back of Trump’s Afghanistan speech as did Euro while Aussie dollar remained firm. In mainland China the Shanghai
Dalian is up again today but looking a little tired as parcel limits kick in: Big Iron ore still roaring: Big Gas is outdoing oil: Big Gold looks strong: Terror Bank continues to under-perform: And Big Liar to ignore reality, though MEA has faded (or that might be an uber-bullish “cup and handle” formation: Finally,
By Chris Becker Overnight markets wobbled into the first session of the week with European shares selling off, the US dollar also retreating while US bourses barely recovered to make scratch sessions. Unease over Korean tensions and the inability of the Trump administration to get anything done continued as traders position for the Jackson
And why wouldn’t they, sheesh, from Banking Day: Institutional shareholders are reviewing their equity exposures to Commonwealth Bank amid deepening concern that the valuation premium on the company’s stock will continue to erode. Many of Australia’s largest super funds and listed equity trusts – including Australian Foundation Investment Company, Argo Investments and Australian Super –
by Chris Becker The week begins meekly with a mixed reaction to Wall Street’s sombre Friday session. All major markets were basically unchanged, with stocks in Japan falling on a higher Yen, bond yields advancing slightly and commodities little changed. In mainland China the Shanghai Composite is up 0.4% to 3282 as it has a better
Banana Man is once gain in control in China: Big Iron is loving it with FMG up 7%: Big Gas is also up with oil: Big Gold is stable. I remain a seller on the bold hope that the Trump Administration is at the lows (for now): Big Bubble is getting caned, especially Terror Bank
by Chris Becker In case you were wondering why the ASX200 hasn’t gone anywhere in recent weeks, reporting season is underway for end of year financial results. Deutsche Bank considers “the picture so far has been disappointing”, while Citi sees the upside in resources but the rest of the market “uneven”. From DB first: Industrials
By Chris Becker Volatility continues across risk markets, this time shifting from the North Korean tensions to the Trump tensions, namely the realisation that the Republican Congress ability to enact any meaningful legislation is evaporating. This has taken the floor out under US stocks, and the USD as a result as the key driver of bull
by Chris Becker Definitely risk off here in Asia today to finish the week on a low as stocks follow the poor overnight lead coming from the Spanish terrorist attack and the derailed Trump administration. Safe havens are the destination for hot money with gold, Yen and bonds rising. In mainland China the Shanghai Composite
Via UBS: Reporting Season Progress Report Underwhelming Guidance Sees FY18 Estimates Crimped So far 73 members of the ASX200 have officially reported (47 large caps and 26 small caps). This represents c40% of ASX200 companies due to report in August though large-cap reporting season has now edged past the half way mark. Overall we believe
